Sentences with phrase «underlying value of the securities»

The smaller the margin requirement in relation to the underlying value of the security futures contract, the greater the leverage.

So you could lose a significant percentage of your money, even if the underlying value of the securities did not change.

Not exact matches

That said, products linked to the value of underlying digital assets, including bitcoin and other cryptocurrencies, may be structured as securities products subject to registration under the Securities Act of 1933 or the Investment Company Acsecurities products subject to registration under the Securities Act of 1933 or the Investment Company AcSecurities Act of 1933 or the Investment Company Act of 1940.

ETFs are subject to risks similar to those of stocks and trading prices may not reflect the actual net asset value of the underlying securities.

If ever there was a disconnect between underlying reality and what is happening in financial markets, it is the boom in Puerto Rican debt which has nearly doubled the value of some of its debt securities over the last few months.

In a rising interest rate environment, the value of mortgage backed securities may be adversely affected when payments on underlying mortgages do not occur as anticipated.

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

That means that during some periods they may sell at a premium or discount to the value of their underlying securities.

Those revenues easily cover the cost of providing that liquidity, which is the cost of understanding the psychology of the passive investors, so as to anticipate their net flows, and also the cost of determining the fair value of the underlying securities, to know what prices he can prudently pay for them, in case he gets stuck holding them.

However, they are generally equally or more secure when compared to stable value funds as their underlying investments are in large part made up of U.S. government securities.

«Value investing is a large - scale arbitrage between security prices and underlying business value» Seth Klarman The increasing short term focus of market participants often means investors place too much weight on short term factors impacting the company to the exclusion of the company's longer term potenValue investing is a large - scale arbitrage between security prices and underlying business value» Seth Klarman The increasing short term focus of market participants often means investors place too much weight on short term factors impacting the company to the exclusion of the company's longer term potenvalue» Seth Klarman The increasing short term focus of market participants often means investors place too much weight on short term factors impacting the company to the exclusion of the company's longer term potential.

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson

However, the Fund may experience a loss even when the entire value of its stock portfolio is hedged if the returns of the stocks held by the Fund do not exceed the returns of the securities and financial instruments used to hedge, or if the exercise prices of the Fund's call and put options differ, so that the combined loss on these options during a market advance exceeds the gain on the underlying stock index.

If you're buying 100 shares, and thousands of other small investors are buying 100 shares, well, you'd expect the price of the ETF to get SLIGHTLY rich vs. the value of the underlying securities.

Authorized participants receive the same value of the underlying security in the fund after selling shares.

Those securities only have an imputed value because of the underlying goods and services produced by the companies that issued the securities.

Delta not only indicates how much the value of the option will change in line with a change in the underlying security, but it also represents the probability that an option will expire in the money.

Mutual fund share value, known as net asset value NAV, is calculated and announced once at the end of the trading day based on share prices of a portfolio's underlying securities.

While a stock split will adjust the price of the underlying security of an option, the option is adjusted so that any changes in price due to the split do not affect the value of the option.

The value of each investment option will vary from day to day, reflecting changes in the value of the underlying securities within each investment strategy.

Share prices can deviate from the fund's net asset value of the underlying securities it holds, as market forces of supply and demand can lead to a trading discount or premium.

The shares of the Spain Fund, Inc., a closed - end mutual fund investing in publicly traded Spanish securities, were bid up in price from approximately net asset value (NAV)-- the combined market value of the underlying investments divided by the number of shares outstanding — to more than twice that level.

Arbitrage might take advantage of imbalances in prices between two markets for the same security (such as a domestic and a foreign market) or between two types of securities whose value depends on the same underlying security (such a stock and a bond convertible into the stock).

The Spain Fund priced at twice net asset value was another example of trading sardines; the only possible reason for buying the Spain Fund rather than the underlying securities was the belief that its shares would appreciate to an even more overpriced level.

For example, a stock option is a derivative security whose value depends on the value of the underlying stock.

The NAV represents the per - unit value of the underlying securities, so in theory it should be what investors are willing to pay for one share of the ETF.

It is worth noting that there may be a difference between an ETF's market capitalization and the net asset value (NAV) of its underlying securities.

Derivative A financial instrument, traded on or off an exchange, the price of which is directly dependent upon (i.e., «derived from») the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement (e.g., the movement over time of the Consumer Price Index or freight rates).

In fact there is no way of determining whether any market is efficient or not in measuring underlying values unless the analyst understands, and analyzes, the specific securities that are the components of that specific market.

Long - term the global securities markets tend to reflect the value of the global economic development and growth that underlies the markets.

Be outlook conscious at the expense of determining whether a security is priced at a discount from, or a premium above, underlying value.

For over 30 years, Third Avenue has consistently pursued a fundamental, bottom - up approach to deep value investing: we focus on the company's balance sheet, the value of its underlying assets, and the discounted price of its securities.

Mutual funds are typically purchased from and sold back to the investment company and priced at the end of the trading day, with the price determined by the net asset value (NAV) of the underlying securities.

You will, of course, need to rebalance your portfolio from time to time to make sure your desired investment mix is maintained as the values of the underlying securities change.

They also don't track the value of the underlying security over time — just for one day.

Because options contracts guarantee the right to trade an asset at a specific price for a certain period of time, their price depends in large part on the perceived value of the underlying security and the length of time before the option expires.

A bond mutual fund's share price is always exactly its net asset value, or the value of the underlying securities in its portfolio.

On the other hand, thanks to the arbitrage mechanism that all ETFs have and similar to open - end mutual fund valuation, the value of an ETF as traded stays very close to the net asset value of the underlying securities in the ETF, with a spread of around 1 % if any.

Another problem with ETFs is they can trade at a premium above the underlying market value of the securities contained in the fund, and at other times they can trade at a discount.

However, very little is really voiced by G&D as to how secondary situations and workout situations ought to be analyzed, compared with their views on how to analyze the securities of primary companies, other than to state that secondary common stocks should not be acquired except at prices of two - thirds or less of underlying value.

The fund seeks investment results that generally correspond to the performance of the underlying index that aims to identify companies that have strong quality scores relative to their peers, while also looking at the value scores of the securities to avoid those quality companies that are potentially over-priced.

What he meant was that in the short - term security prices fluctuate purely based on the opinions of market participants, and can deviate widely from the underlying business values.

You receive shares based on the actual closing market price of the fund, and that is based on the actual value of the underlying securities, and it is the same whether you buy or sell shares.

Like a mutual fund, ETFs are open - ended, meaning that new units of the fund can be created or redeemed at a price per unit that reflects the market value of the underlying securities the fund holds.

Leverage also refers to seeking magnified percentage returns on an investment by using borrowed funds, margin accounts or securities which require payment of only a fraction of the underlying security's value (such as rights, warrants or options).

The purchase of put or call option contracts allows the trader to profit if the underlying security drops in value (puts) or increases (calls).

The security's value is derived from the value of the underlying pool of mortgages.

● The main risk of real estate related securities is that the value of the underlying real estate may decrease in value.

An initial portfolio investment of $ 10,000, and a $ 500 monthly contribution, and purchase of underlying securities at prevailing market values are assumed.

To get a better picture of the real discount one has to consider not the market price of the underlying securities owned, but the actual value, perhaps even the private market value.